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PM0010 Set 1

2. Compare Operation and project procurement. Also list and explain theproject procurement proces s.Answer: - Project Procurement is where the decision to procure and the funding to pay the invoicecomes from a project budget. Operational Procurement is where decision to procure and the funding comes from the general budgetas the commodities or services are required for the overall operation. The method of making the procurement decision can be identical in both cases. project procurement process:-

Specification . This step involves the purchasing department in communicating with the projectmanager to develop and approve a list o fprocurement items necessary for project implementation.The department must specify the approved items to external vendors.

Selection . This step of the project procurement process requires the department to find potentialsuppliers which can procure the necessary items, according to the specifications. For this purpose thedepartment needs to set vendor selection criteria, which may include such measures as Delivery,

Service Quality, Cost, and Part Performance. Contracting . The department must communicate with the suppliers on delivery dates and paymentconditions in order to ensure on - time delivery of the ordered items within the stated project budget. All the conditions should be l isted in a procurement contract. Also a detailed delivery schedule shouldbe negotiated with the procurers and approved by the purchasing department.

Control . Success of the procurement management process depends on how the purchasingdepartment controls the delivery and payment processes. Through arranging regular meetings withthe vendors, tracking delivery progress, reviewing the ordered items against the approved productspecifications, and making necessary changes to the procurement contract, the department cancontrol the process and ensure successful accomplishment.

Measurement . The final step of the project procurement management process refers to using asystem of performance indicators and measures for assessing the effectiveness and success of theentire process. The project manager needs to set up such a system and the purchasing departmentneeds to use it in measuring the process. Special meetings and workshops can be conducted to viewKPIs, intermediate results of staged delivery, performance of procurers, adherence to productspecifications, communications with suppliers, and the like. In case any deviations or gaps arerevealed the department should notify the project manager and make necessary changes to theprocurement plan.

3. Describe the role of project managers in Human resource management andcommunication management. Answer :- Role of project manager in HR and communications management:- A project manager isresponsible for managing various tasks, activities and processes to ensure that the project is delivered

in the defined time. He is responsible for defining the goals and objectives of the project and ensuresthat the resources that are required for the smooth working of the project are available. He alsomonitors and controls the project process to keep track of the status of the work. This ensures thatthe progress, schedule, procedures and the cost of the project are well monitored. Apart frommonitoring and controlling the implementation and execution of the project, a project manager alsoplays a vital role in Human Resources and communications management such as: Assists in effective communications among the team members, Consistency in methodology, Consistency in process, documentation, procedure,

http://www.mymanagementguide.com/guidelines/project-management/procurement-management/procurement-items-list/http://www.mymanagementguide.com/project-budget-and-financial-resources/http://www.mymanagementguide.com/project-budget-and-financial-resources/http://www.mymanagementguide.com/guidelines/project-management/procurement-management/procurement-items-list/

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Meet deadlines and commitments Facilitate formal metrics and reporting to upper management/project sponsors. Entrusted with the authority and accountability necessary to get the job done. Able to cope with conflicting scope, quality, schedule, risk, and other requirements. Single point of integration to meet customers needs. Held accountable for project failure. Maintain control over the project by measuring performance and correcting as necessary.

4. if the optimistic estimate of an activity is 12 days & pessimistic estimate is 18 days.What is the variance of this activity? Answer :- Estimated time of the project = (to + 4* tm + tp) If three standard deviations are chosen for the optimistic and pessimistic times,then there will be sixstandard deviations between them. In this case the varianceof each activity completion time is givenby Variance= [(tp - to) / 6]2 to=12

tp=18

Variance = [(18-12)/6]2 = [6/6]2

=[1]2 = 2 Variance = 2

5. Describe the following quality control tools:a. Ishikawa diagram b. Flow chart c. Pareto chart d. Scatter diagram Answer:-

1. Ishikawa Diagram - also known as the Fishbone Diagram or the Cause-and-Effect Diagram, is a toolused for systematically identifying and presenting all the possible causes of a particular problem ingraphical format. The possible causes are presented at various levels of detail in connected branches,

with the level of detail increasing as the branch goes outward, i.e., an outer branch is a cause of theinner branch it is attached to. Thus, the outermost branches usually indicate the root causes of theproblem. The Ishikaw a Diagram resembles a fishbone (hence the al ternative name FishboneDiagram) it has a box (the fish head) that contains the statement of the problem at one end of thediagram. From this box originates the main branch (the fish spine) of the diagram . Sticking out of this main branch are major branches that categorize the causes according to their nature. Insemiconductor manufacturing, 4 major branches are often used by beginners, referred to as the 4Ms', corresponding to Man, Machine, Materials, and Methods. Sometimes 5 branches are used (5Ms'), with the fifth branch standing for Measurement, or even M - ironmen. These Ms or problemcause categories are used to classify each cause identified for easier analysis of data. Of course, one is

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not constrained to use these categories in fishbone diagram. Experienced users of the diagram addmore branches and/or use different categories, depending on what would be more effective in dealingwith the problem.

2. Flow chart: A typical definitio n of Flow Chart usually reads something like A flow chart is agraphical or symbolic representation of a process. Each step anthem process is represented by adifferent symbol and contains a short description of the process step. The flow chart symbols arelinked together with arrows showing the process flow direction.

3. Pareto Chart: A Pareto Chart is a series of bars whose heights reflect the frequency or impactof problems. The bars are arranged in descending order of height from left to right. This means thecategories represented by the tall bars on the left are relatively more significant than those on theright .The chart gets its name from the Pareto Principle, which postulates that 80 percent of thetrouble comes from 20 percent of the problems.

4. Scatter diagram: A scatter diagram is a tool for analyzing relationships between two variables. Onevariable is plotted on the horizontal axis and the other is plotted on the vertical axis. The pattern of their intersecting points can graphically show relationship patterns. Most often scatter diagram is usedto prove or disprove cause-and-effect relationships. While the diagram shows relationships, it does notby itself prove that one variable causes the other. In addition to showing possible because and-effectrelationships, a scatter diagram can show that two variables are from common cause that is unknownor that one variable can be used as a surrogate for the other.

6.List the benefits of WBS? Need for risk management in an organization-comment. Answer: - WBS :- Work breakdown structure (WBS) is a fundamental component of projectmanagement process that helps in defining and organizing the total scope of a project usinghierarchical tree structure. According to Project Management Body of Knowled ge (PMBoK), WBS is adeliverable-oriented hierarchical decomposition of the work to be executed by the project team toaccomplish the project objectives and create the required deliverables. The hierarchy structureapproach of WBS helps the project team to know the requirements of total project more accuratelyand specifically. WBS can also be used to assign responsibilities and allocate resources to the project.It helps the team to monitor and control the project WBS is the critical input to various project management processes and deliverables like activitydefinitions, project schedule network diagrams, project and program schedules, performance reports,

risk analysis and response, control tools or project organization. WBS has several levels in itshierarchy structure. These can be further used as an input to the scheduling process that supportselaboration of tasks, activities, resources and milestones which can be cost estimated, monitored, andcontrolled. Benefits of WBS Work breakdown structure represents family tree hierarchy structure of project operations required toaccomplish the objectives of the project. Tasks identified in the WBS collectively describe the overallproject. It serves to describe the link between the end objective and activities required to reach thatobjective. Need for risk management in an organization-comment. The PMBoK defines risk management as the formal process by which risk factors are systematicallyidentified, assessed and provided for. Risk management provides an opportunity and support to an

organisation to gain and access better control over various factors of a project. They are: Time (planning/scheduling) Money estimate Quality control Information Risk management helps the organisation to control and monitor various activities in a project. Thefollowing points describe the needs of the risk management:

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Promote an uninterrupted progression in the activities carried out within the project by takingappropriate measures, as well as to remove any interruptions as quickly as possible in the event of interrupts in the project. Instil confidence in the project team as well as project stakeholders and third parties. Promote communication within the entire project team. Support the decision making process of a project. The Risk Management process is a generic guide for any organisation, regardless of the type of business, activity or function. It is an integral part of business planning. It also helps project sponsorsand project teams to take informed decisions regarding alternative approaches to achieve theirobjectives and to reduce relative risk involved, in order to increase the likelihood of success in meetingor exceeding the objectives of the project. Risk management encourages the project team to takeappropriate measures to: Minimise adverse impact on project scope, cost, schedule and quality. Maximise opportunities to improve the objectives of project with lower cost, shorter schedules,enhanced scope and higher quality. Minimise management crisis. The effectiveness of risk management strategies varies for one project to another based on their riskprofiles. The following points describe the applicability of different strategy: For relatively low-uncertain projects, fast decision making can reduce the uncertainties from delayscaused by regulatory changes, political changes and economic changes. For project with high level certainties, purposeful postponement of some commitments and decisionscan reduce the risks through acquisition of more and better information that lead to better decisions.